Derivatives
A derivative is an instrument derived from at least one other entity known as the underlying. The value of a derivative instrument depends on the value of the underlying.
The most common underlying includes stocks, bonds, exchange rates, interest rates, indexes, commodities, and other derivative instruments. The most common examples of derivative instruments are options, futures, and swaps.
Derivatives can help to provide cost-effective protection against risks associated with movement in the prices of the underlying. Thus, you can hedge against fluctuations in exchange and interest rates, equity and commodity prices, and credit standing.
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Exchange Traded Derivatives (ETD)
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Over the Counter Derivatives (OTC)
The SAP Financial Services Data Management data model enables you to represent data related to the trading of derivatives.
More Information
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For more information, see the related entities and their definitions in the data model represented in SAP PowerDesigner.
- Over-The-Counter Derivatives
- Exchange-Traded Derivatives